AI and Human Capital: Efficiency Impact on Firm Types

Both artificial intelligence (AI) and human capital (HIC) have a more positive impact on non-state-owned and growing firms. In particular, growing firms experience a significantly stronger improvement in efficiency. On the other hand, human capital is more effective in enhancing the input-output efficiency of state-owned firms. This suggests that non-state-owned firms may have stronger motivations to leverage the opportunities of human-AI cooperation to reduce costs and increase efficiency compared to state-owned firms. Additionally, growing firms, as predicted by the firm's dynamic life cycle theory, have a tendency to increase productivity faster than older firms by learning through experience and adopting advanced technology upon entering the market.